The President of Dangote Industries Limited, Aliko Dangote, has explained that the high price of petrol in Nigeria is partly driven by the continued smuggling of the commodity to neighbouring countries where it is sold at significantly higher prices.

Speaking in an interview aired on Arise TV on Tuesday, Dangote said petrol prices in neighbouring countries were between 30 and 50 per cent higher than in Nigeria, creating a strong incentive for traders to move the product across the borders.

Dangote stated that the cost of petrol should not be assessed in isolation, urging Nigerians to compare domestic prices with those obtainable in neighbouring countries.

“You know, expensive is relative. In the sense that today, maybe, you know, a lot of them, there’s ignorance also. What they need to do is ask, what is the neighbour’s price?”

He disclosed that large quantities of petrol produced for the Nigerian market were still being diverted to neighbouring countries because of the attractive profit margins available across the borders.

“I don’t know if you know that there’s still a lot of smuggling of the same petrol we are producing to our neighbouring countries,” he said.

According to him, the price gap between Nigeria and its neighbours makes cross-border smuggling a lucrative business, with some countries paying as much as 30 to 50 per cent more for the same product.

Dangote specifically cited Niger Republic, where he said petrol was selling between 20 and 25 per cent higher than in Nigeria.

Using a hypothetical Nigerian pump price of N1,350, he explained that traders could make an immediate 25 per cent return by moving the product across the border.

“So, what business are you going to do that will make you have an instant 25 per cent return?” he asked.

He further alleged that some petrol meant for domestic distribution was being falsely presented as supplies destined for places such as Sokoto before being diverted to border communities like Ilela for sale to buyers from neighbouring countries.

The development, he warned, reduces the volume of petrol available to Nigerian consumers and contributes to the pressure surrounding domestic fuel supply.

However, Dangote said the major concern facing the downstream sector may soon move beyond the issue of price to the availability of petroleum products, particularly amid the ongoing crisis in the Middle East.

“And the problem now, going forward, I must also warn that this crisis in the Middle East is not even about price; it’s about availability,” he said.

Despite the global uncertainties, Dangote assured Nigerians that the Dangote Refinery would continue supplying the domestic market and that consumers should not fear fuel shortages.

“We will deliver to Nigeria. Nigerians don’t need to worry. There will not be any shortage from our own part.”

He added: “There won’t be any shortage. There will not be any queues. We will make sure that we keep satisfying the market, despite all odds.”

The comments came as investors turned their attention to the Nigerian Exchange on Monday following the commencement of the N2.15 trillion initial public offering of Dangote Petroleum Refinery and Petrochemicals.

The IPO, formally launched during the opening gong ceremony at the NGX trading floor in Marina, Lagos, marked the first time a petroleum refinery was offered to investors on the Nigerian stock market in the Exchange’s 66-year history.

The offer comprises 4.1 billion ordinary shares priced at N525 per share, with a minimum subscription of 10 shares valued at N5,250. The offer is open to retail, institutional and eligible African investors and is scheduled to close on October 13, 2026